Slide 1: Q4 2023 Earnings Slides
Q4 2023 Earnings Slides February 6, 2024
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements reg
Slide 3: Fourth Quarter Financial Summary
Fourth Quarter Financial Summary • Revenue was $1,361 million in Q4 2023, compared to $1,300 million in Q4 2022, an increase of 5%1 year-over-year and 15% quarter- over-quarter. Revenue • Average revenue per user was $3.29 in Q4 2023, compared to $3.47 in Q4 2022. • Operating margin was (18)% in Q4
Slide 4: Business Highlights
Business Highlights We grew and deepened our engagement with our community: • DAUs were 414 million in Q4 2023, an increase of 39 million, or 10%, year-over-year. • DAUs increased sequentially and year-over-year on both iOS and Android platforms. • Total time spent watching Spotlight content increas
Slide 5: Business Highlights (Continued)
Business Highlights (Continued) We invested in our augmented reality platform: • Over 350,000 AR creators and developers have built nearly 3.5 million AR Lenses that have been viewed over 3 trillion times. • Over 300 million Snapchatters engage with augmented reality every day, on average. • At our
Slide 6: Average Daily Active Users (DAU)
Average Daily Active Users (DAU) (in millions, unaudited) GLOBAL NORTH AMERICA1 + 10% + 0% 397 406 414 100 100 100 101 101 100 363 375 383 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EUROPE2 REST OF WORLD + 4% + 19% 211 218 96 202 92 93 94 95 183 190 88 175 Q3'22 Q4'22 Q1
Slide 7: Revenue by Geography
Revenue by Geography (in millions, unaudited) GLOBAL NORTH AMERICA1 + 5% + 2% $1,300 $1,361 $880 $900 $1,189 $812 $786 $1,128 $1,068 $989 $687 $640 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EUROPE2 REST OF WORLD + 9% + 11% $223 $238 $201 $199 $202 $219 $191 $200 $182 $1
Slide 8: Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) (unaudited) GLOBAL NORTH AMERICA1 - 5% + 2% $3.47 $8.77 $8.96 $3.29 $8.13 $7.82 $3.11 $2.93 $2.58 $2.69 $6.83 $6.37 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 EUROPE2 REST OF WORLD + 5% - 7% $1.10 $2.38 $2.49 $1.00 $0.98 $1.03 $0.96 $2.11
Slide 9: Adjusted Gross Margin and Adjusted Cost of Revenue
1 Adjusted Gross Margin and Adjusted Cost of Revenue (dollars in millions, unaudited) ADJUSTED GROSS MARGIN1 ADJUSTED COST OF REVENUE1 COMPOSITION Infrastructure Costs Advertising Partner & Other Costs Content & Developer Partner Costs - 9 PPT + 31% $615 64% $550 61% $491 $182 56% 54% 55% $468 54% $
Slide 10: Adjusted Operating Expense Margin and Adjusted Operating Expenses
1 Adjusted Operating Expense Margin and Adjusted Operating Expenses (dollars in millions, unaudited) ADJUSTED OPERATING EXPENSE MARGIN1 ADJUSTED OPERATING EXPENSES1 COMPOSITION Research & Development Sales & Marketing General & Administrative + 3 PPT - 2% 57% $610 $599 $615 $599 54% $587 50% $553 46
Slide 11: Net Income (Loss) & Adjusted EBITDA
1 Net Income (Loss) & Adjusted EBITDA (dollars in millions, unaudited) NET INCOME (LOSS) ADJUSTED EBITDA1 Net Income (Loss) Margin Adjusted EBITDA Margin2 $233 $159 (18)% (22)% 18% (32)% (31)% $73 (33)% (35)% $(248) 6% 12% $40 $(288) $1 $(329) 0.1% 3% $(360) $(368) $(377) (4)% $(38) Q3'22 Q4'22 Q1'2
Slide 12: Diluted Net Income (Loss) Per Share & Common Shares Outstanding
Diluted Net Income (Loss) Per Share & Common Shares Outstanding Plus Shares Underlying Stock-Based Awards (in millions, except per share data, unaudited) DILUTED NET INCOME (LOSS) PER SHARE1 COMMON SHARES OUTSTANDING PLUS SHARES UNDERLYING STOCK-BASED AWARDS Common Shares Outstanding Shares Underlyi
Slide 13: Operating Cash Flow and Free Cash Flow
1 Operating Cash Flow and Free Cash Flow (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW1 $111 $103 $165 $151 $78 $125 $18 $56 $13 $(61) $(119) $(82) Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Capex $(38) $(47) $(48) $(37) $(73) $(54) YoY Change (65)% (51)% (
Slide 14: Full Year Summary
Full Year Summary
Slide 15: Full Year Financial Summary
Full Year Financial Summary • Revenue was $4,606 million1 in 2023, compared to $4,602 million in 2022. Revenue • Average revenue per user2 was $11.49 in 2023, compared to $12.98 in 2022. • Operating margin was (30)% in 2023, compared to (30)% in 2022. • Adjusted gross margin3 was 55% in 2023, compar
Slide 16: Revenue and Average Daily Active Users (DAU)
1 Revenue and Average Daily Active Users (DAU) (in millions, unaudited) REVENUE AVERAGE DAILY ACTIVE USERS1 ~3x growth in revenue ~2x growth in DAU $4,602 $4,606 414 $4,117 375 319 265 $2,507 218 $1,716 2019 2020 2021 2022 2023 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 YoY Change 45% 46% 64% 12% —% YoY Change 1
Slide 17: Adjusted Gross Margin and Adjusted Gross Profit
1 Adjusted Gross Margin and Adjusted Gross Profit (dollars in millions, unaudited) ADJUSTED GROSS MARGIN1 ADJUSTED GROSS PROFIT1 6 PPT margin expansion ~3x growth in gross profit $2,837 $2,515 $2,405 62% 58% 54% 55% 49% $1,357 $848 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 GAAP Gross GAAP Gr
Slide 18: Net Loss & Adjusted EBITDA
1 Net Loss & Adjusted EBITDA (in millions, unaudited) NET LOSS ADJUSTED EBITDA1 $617 $378 $(488) $162 $(945) $45 $(1,034) $(1,322) $(1,430) $(202) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 1 Adjusted EBITDA is a non-GAAP measure, which we define as net income (loss), excluding interest incom
Slide 19: Operating Cash Flow and Free Cash Flow
1 Operating Cash Flow and Free Cash Flow (in millions, unaudited) OPERATING CASH FLOW FREE CASH FLOW1 $223 $293 $247 $185 $55 $35 $(168) $(225) $(305) $(341) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Capex $(36) $(58) $(70) $(129) $(212) 1 Free Cash Flow is a non-GAAP measure, which we defin
Slide 20: Q1 2024 Outlook
Q1 2024 Outlook As we enter Q1, we anticipate continued growth of our global community and, as a result, our guidance range is built on the assumption that DAU1 will be approximately 420 million in Q1. We are focused on executing against our roadmap to deliver improvements to our direct-response adv
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Adjusted EBITDA Reconciliation Net income (loss) $ (359,502) $ (288,460) $ (328,674) $ (377,308)
Slide 23: Non-GAAP Financial Measures Reconciliation – Quarterly
Non-GAAP Financial Measures Reconciliation – Quarterly (in thousands, unaudited) Three Months Ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Non-GAAP net income (loss) reconciliation Net income (loss) $ (359,502) $ (288,460) $ (328,674) $
Slide 24: Non-GAAP Financial Measures Reconciliation – Annual
Non-GAAP Financial Measures Reconciliation – Annual (in thousands, unaudited) Year Ended 2019 2020 2021 2022 2023 Adjusted EBITDA Reconciliation Net income (loss) $ (1,033,660) $ (944,839) $ (487,955) $ (1,429,653) $ (1,322,485) Add (deduct): Interest income (36,042) (18,127) (5,199) (58,597) (168,3
Slide 25: Note Regarding User Metrics and Other Data
Note Regarding User Metrics and Other Data We define a Daily Active User, or DAU, as a registered Snapchat user who opens the Snapchat application at least once during a defined 24-hour period. We calculate average DAUs for a particular quarter by adding the number of DAUs on each day of that quarte
Slide 26: Note Regarding User Metrics and Other Data (Continued)
Note Regarding User Metrics and Other Data (Continued) We count a DAU only when a user opens the application and only once per user per day. We believe this methodology more accurately measures our user engagement. We have multiple pipelines of user data that we use to determine whether a user has o